03-30-2021, 12:09 PM
(03-30-2021, 11:25 AM)ken-do-nim Wrote: Tax consequences be damned, I got out of one of my leveraged positions today in LABU. I believe it has further to fall and I don't need to be along for the ride. (Bought @ $60/share, sold @ $70/share, but in the interim it zoomed up to $180. For the future I am going to come up with a drawdown rule so that I can profit from huge spikes.)Leveraged funds are fun and with the right plan you can profit if the market goes your way at all Buying and holding through thick and thin just isn't the same as a handful of stock shares. There has been no better time for triple leverage funds. You enjoyed the good part. Pull up a chart on most any of them and you will see the drawdown is just too much if you pay no mind to momentum. They get crushed in a downdraft, they gradually lose through options cost slippage in a sideways market. It only works when the market is at least moderately bullish. I know you don't understand options but you are effectively buying call options every day. I sell options most every day so I can pocket the slippage.